v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 6. INCOME TAXES

 

The Company’s net deferred tax assets at December 31, 2025 and 2024, are as follows: 

 

Deferred tax assets  2025   2024 
Organizational costs/Start-up expenses  $478,192   $438,922 
Federal Net Operating Loss   
—
    
—
 
Total deferred tax assets   478,192    438,922 
Valuation allowance   (478,192)   (438,922)
Deferred tax assets, net of allowance  $
—
   $
—
 

 

As of December 31, 2025 and 2024, the Company did not have any U.S. federal and state net operating loss carryovers (“NOLs”) available to offset future taxable income.

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management determined that a full valuation allowance was required.

 

The income tax provision for the years ended December 31, 2025 and 2024, consists of the following: 

 

Federal  2025   2024 
Current  $6,774   $25,700 
Deferred   (39,269)   (37,141)
State          
Current   (708)   4,446 
Deferred   
—
    
—
 
Change in valuation allowance   39,269    37,141 
Income tax provision  $6,066   $30,146 

 

A reconciliation of the income tax rate to the Company’s effective tax rate for the years ended December 31, 2025 and 2024, is as follows:

 

   As of
December 31,
2025		   As of
December 31,
2024		 
Statutory federal income tax rate   21.0%   21.0%
State taxes, net of federal tax benefit   0.5%   (3.4)%
Permanent book/tax differences   1.0%   (12.2)%
Change in valuation allowance   (26.5)%   (28.7)%
Effective income tax rate   (4.1)%   (23.3)%

  

The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions and is subject to examination by the various taxing authorities.